Shell Begins Nigeria Ops Cost-Cutting Program to Offset Costs

Royal Dutch Shell (RDSB.LN) said Sunday it has started implementing a number of cost cuts to its operations in Nigeria, which are likely to include job cuts, to combat rising costs and falling oil revenues caused by production outages.

A Shell spokesman in the Netherlands said the changes were underway and follow an internal announcement May 30 in which the company told its roughly 4,500 Nigerian employees that it would implement a “series of measures” to cut cost and boost productivity.

The changes amount “an austerity program for three years,” the company said in the announcement, which wasn’t made public but was made available to Dow Jones Newswires.

“The measures will demand significant step change in performance at personal and organizational levels as well as focus on how to reduce costs,” the company said at the time.

Rigzone